Fears of further aggressive cuts to the German feed-in tariff (EEG) mid-year, on the back of installations exceeding 6GW in 2010, would seem to have been averted with industry and government provisional agreement on a new tariff structure. Although yet to be ratified into law, the new FiT structure limits regression to a maximum of 12% in July, should installations reach 6.5GW from March-May (normalized annually).
However, the new mechanism allows for a FiT increase should installations not reach 2.5GW and no cut would be implemented should installations fail to reach 3.5GW on a normalised annual run-rate based on installations from March to May, 2011.
Importantly, the standard annual FiT reduction is expected to be changed from the current 21% reduction to a less aggressive 9%, reviving the previously long-standing annual tariff regression rates.
The proposed tariff changes are as follows:
< 2.5GWp: FiTs would be increased by 2.5%
< 3.5GWp, no further cut
< 4.5GWp: 3% FiT cut
< 5.5GWp: 6% FiT cut
< 6.5GWp: 9% FiT cut
> 6.5GWp: 12% FiT cut
the FiT cut should be the explanation of the drop in solar sector in US market.
HK’s solar stocks should follow in next week
It’s time to show us where is the support level of those solar players